SHFE/LME Zinc Price Ratio Pulled Back from Highs Last Week

SHANGHAI, Jan 9 (SMM) - Basically, overseas smelters did not have plans to resume the production soon, so the zinc supply at abroad was at a low level. As such, the constant decline in demand will not give rise to an oversupply in the foreseeable future thanks to falling zinc inventory. In the domestic market, the zinc ingot supply rose steadily as a result of supply surplus of zinc ore. Yet, the demand was sluggish during the off-season, especially the demand before the Chinese New Year that was lower compared with the same period in previous years. It is expected that there is limited upside room for SHFE/LME zinc price ratio mainly because the market dynamics at home and broad will not be subverted in the short term.